Head-To-Head Analysis: Loar (NYSE:LOAR) vs. EHang (NASDAQ:EH)

EHang (NASDAQ:EH) and Loar (NYSE:LOAR) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for EHang and Loar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EHang	0	0	3	0	3.00
Loar	0	1	3	0	2.75

EHang currently has a consensus target price of $24.75, indicating a potential upside of 45.16%. Loar has a consensus target price of $77.00, indicating a potential downside of 12.85%. Given EHang’s stronger consensus rating and higher probable upside, equities research analysts plainly believe EHang is more favorable than Loar.

Earnings and Valuation

This table compares EHang and Loar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EHang	$16.54 million	65.47	-$42.49 million	($0.58)	-29.40
Loar	N/A	N/A	N/A	N/A	N/A

Loar has lower revenue, but higher earnings than EHang.

Insider and Institutional Ownership

94.0% of EHang shares are owned by institutional investors. 39.6% of EHang shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares EHang and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EHang	-110.21%	-84.09%	-35.65%
Loar	N/A	N/A	N/A

Summary

EHang beats Loar on 5 of the 8 factors compared between the two stocks.

About EHang

EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.